Analyst Meta Marshall from Morgan Stanley maintained a Hold rating on Motorola Solutions (MSI – Research Report) and keeping the price target at $471.00.
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Meta Marshall has given her Hold rating due to a combination of factors surrounding Motorola Solutions’ recent announcement to acquire Silvus Technologies. The acquisition aligns with Motorola’s strategic goals, as Silvus’ technology complements Motorola’s existing offerings, particularly in secure communications. However, the transaction’s scale, being the largest for Motorola, suggests a cautious approach is warranted.
While the acquisition is expected to be accretive to non-GAAP EPS within 12 months, the purchase price metrics, such as the ~9x 2025 estimated EV/Revenue and ~21x 2025 estimated EBITDA, indicate a significant investment. Additionally, the deal’s completion is contingent upon regulatory approvals and performance milestones, adding layers of uncertainty. These factors contribute to the Hold rating, reflecting a balanced view of potential benefits and risks.